Looking for later-stage ($10-$50MM revenue) Debt

Western Technology could be an option; usually it is in conjunction with an investment round, but not always. If you send me a prospectus I can make an introduction.

There are a couple of firms you can talk to regarding this financing need. The key is identifying a partner that can work effectively with the bank you have in place, as an inter-creditor will be necessary, and the sub lender will be subject to lockup periods, etc. that will make a "friendly" relationship amongst the lenders important. In addition to financial metrics, another factor that will determine how many firms are interested is whether or not your company is venture-backed. Most funds/firms specialize in following the VCs -- essentially layering capital behind equity. Finally, given how difficult it is in most tech sectors to forecast accurately, it's important to have a proven partner that will be a stable, reliable partner/provider of credit. Many firms/funds/banks come and go in the tech lending market, so selecting a lender that will be there "in good times and bad" is crucial given their junior lending position.

Assuming EBITDA positive operations, you may want to evaluate Arctaris Capital as a source of non-dilutive capital. Andy Clapp is principal and as smart as the they come. Arctaris is offering royalty based financing based on TIGRcub instrument. background here: http://www.arctaris.com/images/stories/arctaris_royalty_security_white_paper.pdf

Thanks guys - really appreciate the input

There are a lot of great players out there.

You could look into Western Technology (I've had a great relationship with them for the past few years). They are a venture debt provider and the cost will be fairly high compared to a traditional bank however it should come with more flexibility.

On the traditional bank side, I would recommend Square 1 or SVB.

Best of luck!

The operative issue is "secured" vs "non-secured" lending. The existing conventional lender will have filed a UCC-1 against all business assets. There is undoubtedly a loan agreement that prohibits using those business assets as collateral for another loan, meaning failure to notify the bank could result in immediate default of the loan (a potential not to be avoided.)

So any new source of capital will know that in case of liquidation their capital will be second behind the senior lender. This is not to say it cannot be done, but it will be typically done using a mezzanine debt facility that normally operates in follow on capitalization situations. These folks are best found around Wall Street not Main Street.

The requirement is relatively small given their appetite and that may be a challenge.

1. If you haven't yet, ask your banker if they have any groups that they've worked with in the past.

2. Check out Partners for Growth. You've described their sweet spot. http://www.pfgrowth.com/. Andrew Kahn is the managing director.